Asset management firm Vaneck released a report projecting bitcoin could reach $2.9 million per coin by 2050, becoming a global medium of exchange and reserve currency. The report suggests bitcoin could settle 10% of global international trade and 5% of domestic trade, with central banks holding 2.5% of their assets in BTC. Scalability challenges are noted, but Layer-2 solutions may enhance adoption.
Vaneck Predicts Bitcoin Could Reach $2.9 Million by 2050
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Vaneck Predicts Bitcoin Could Hit $2.9 Million by 2050
Asset management firm Vaneck published a report titled “ Bitcoin 2050 Valuation Scenarios: Global Medium of Exchange and Reserve Asset” last week. The report, prepared by the firm’s digital assets research team, led by Head of Digital Assets Research Matthew Sigel and Senior Investment Analyst Patrick Bush, explores the potential for bitcoin to reach a valuation of $2.9 million per coin by 2050.
“By 2050, we see bitcoin ( BTC) solidifying its position as a key international medium of exchange, ultimately becoming one of the world’s reserve currencies,” they explained, adding: “It is conceivable that by 2050 bitcoin could be used to settle 10% of the globe’s international trade and 5% of the world’s domestic trade. This scenario would result in central banks holding 2.5% of their assets in BTC.” The Vaneck team continued:
Using assumptions about global growth, investor BTC demand, and bitcoin’s turnover, we apply a velocity of money equation to suggest a potential price of $2.9M per bitcoin, translating to a total market cap of $61 trillion.
“Applying our existing framework for valuing Ethereum L2s, we estimate that Bitcoin L2s could collectively be worth $7.6T, approximately 12% of BTC’s total value,” they added.
Vaneck further explained that bitcoin is set to play a significant role in the future financial landscape due to declining confidence in current reserve currencies like the U.S. dollar, euro, pound sterling, and yen. As global GDP shifts and property rights concerns grow, bitcoin’s trustless, neutral, and immutable monetary policy makes the cryptocurrency a viable alternative. The firm noted that despite scalability challenges, Layer-2 solutions and potential software upgrades could enhance bitcoin’s adoption in international trade and as a reserve currency.
What do you think about Vaneck’s prediction for bitcoin’s future role in global trade and as a reserve currency? Let us know in the comments section below.
